On completion of products under a job cost system, costs are transferred as follows:
A) Debit finished goods inventory, credit work in process
B) Debit work in process, credit finished goods inventory
C) Debit cost of goods sold, credit work in process inventory
D) Debit work in process inventory, credit cost of goods sold

Question

Quizplus · Accepted Answer

When products are completed under a job cost system, the costs associated with those products are transferred from the Work in Process (WIP) account to the Finished Goods Inventory account. This is done by debiting Finished Goods Inventory (to increase it) and crediting Work in Process (to decrease it), reflecting the movement of goods from being in process to being finished.

On Completion of Products Under a Job Cost System, Costs